Tesla to launch in Saudi Arabia in April

27/03/2025 04:36 AST

US-based electric vehicle manufacturer Tesla will begin its operations in Saudi Arabia next month, the company has announced.

Scheduled to launch on April 10 at the Bujairi Terrace in Riyadh, the EV maker - led by CEO Elon Musk- has been active in several countries in the Middle East but is yet to establish its presence in the Kingdom, the largest market in the Gulf region.

The upcoming launch of Tesla also aligns with Saudi Arabia's broader strategy to reduce its dependence on crude revenues.

The move is also expected to contribute to the Kingdom's sustainable journey, with the nation targeting to achieve net-zero emissions by 2060.

"You and your family are warmly invited to our launch event at the Bujairi Terrace on April 10. Explore our global bestselling lineup and step into a world powered by solar energy, sustained by batteries, and driven by electric vehicles," the company said on its website.

It added: "Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what's next in AI (artificial intelligence) and robotics."

The company did not disclose when these electric vehicles will be available for purchase in Saudi Arabia.

Tesla's entry into the Kingdom comes at a tumultuous time for the company, as it is facing a decline in sales across various markets like Europe and the US.

According to data from the European Automobile Manufacturers Association, Tesla has witnessed a 42.6 percent drop in sales on the continent in 2025, even as overall purchases of electric vehicles in the region continue to rise.

In the US, widespread protests have been organized against Tesla in recent months, following Musk's appointment as the head of the Department of Government Efficiency under the Donald Trump administration.

The Saudi government has actively promoted the EV industry to achieve economic diversification and sustainability.

The Kingdom's Public Investment Fund is the majority investor in Lucid Group, a startup competing with Tesla in the global market.

In January, Lucid Motors became the first global automotive company to join the Kingdom's "Made in Saudi" program. The milestone grants the firm the right to use the "Saudi Made" label on its products, representing the Kingdom's focus on quality and innovation.

In September 2023, Lucid also launched its first manufacturing plant outside the US in the Kingdom, with an initial capacity to produce 5,000 electric cars in a year.

Aside from investing in established companies, Saudi Arabia is pushing ahead with its own homegrown electric vehicle brand, Ceer.

Announced in November 2022 by Saudi Arabia's Crown Prince Mohammed bin Salman, the company is expected to contribute SR30 billion ($7.9 billion) to the Kingdom's gross domestic product by 2034.

In February, during the Private Sector Forum organized by the Public Investment Fund, Ceer signed 11 deals worth SR5.5 billion ahead of its model launch in 2026.

Arab News